The Monday note - 18 December 2017

• The FTSE 100 index increased by nearly 97 points to close on Friday at 7,490.6, as signs of compromise on Brexit boosted investor confidence. The ten year Gilt yield stood at 1.15%. 
• A study by the Financial Times suggested that Brexit-related job relocations from the UK to the EU might only total 4,600 roles. This is significantly lower than previous estimates. 
• The US Federal Reserve increased its policy rate by 25 bps to 1.50%. China’s central bank raised its money market rate by 5 bps in response. 
• The number of people in work in the UK fell by 56,000 in the three months to October, although on a month-on-month comparison employment rose by 21,000 jobs. 

Chief Economist comments: 

Around the world, major central banks are either raising rates or looking to wind down their QE programmes. We finish 2017 in a world that is a far cry from where we were just a few years ago when Monday Note was briefing readers on negative interest rates.

The reality is that the financial emergency that brought about exceptional monetary policy is now a thing of the past. The gloom-mongers may huff-and-puff over Brexit or Trump or Catalonia, but the worst economic crisis in living memory is now disappearing into the history books. A Merry Christmas and a Happy New Year to all.